british gas contract

BusinessEnergyBroker

Premier/ Billsavings

Why don't you become a brokers its seems that you believe that you know what's best for the members of these boards.

I have offered assitance and can probably help save this member money without me ever gaining anything from it. I don't need to and I don't need the money either (unlike others who are struggling to keep businesses afloat or make ends meet)

Even while typing this message I have just heard one of my staff say that a customer has receved a business electricity renewal of 27p per kwh.

If either of you wishes to forward your contact details then you can offer the customer assitance as you clearly know best.

Some of you people think you have a monopoly on offering advice!

espresso

It is against the forum rules (which you clearly have not read) to pass any personal contact details via PM.

:rolleyes:

BusinessEnergyBroker

Where in any of my posts have (which you clearly have not read) have I requested contact details??

Cardew

Without getting involved in a private argument, isn’t it an indictment of our Utility companies that their pricing structure is so complicated that ‘energy brokers’ can apparently make a lucrative income advising businessmen on how to get a suitable tariff.

Yet another unnecessary overhead borne by the customer methinks!!

BusinessEnergyBroker

In theory Cardew is right. Whats wrong with with charging a flat rate regardless of the time of day?

Well here's why.

Businesses operate different trading hours. Bakers are a prime example as they generally work through the night when the demand for electricity is at its lowest. Demand drives the price (amongst other things). Bakers usually have an Economy 7 supply which allows them to benefit from the cheaper electricity during their highest usage period.

Restaurants and bars generally have their busiest periods at Evenings and Weekends. Many have a 3 rate supply offering two "off peak" prices and they benefit from that by paying a cheaper price when demand is lower than peak hours.

There are 14 different supply regions. Each having its own distribution network. The cost to distribute electricity varies from region to region. The most expensive being in the North of Scotland (area 17) and the cheapest tends to be in the Midlands regions and London (area 11, 12, 14). This is reflected in the prices that customers pay in these regions.

Many different tariffs exist within the regions. So there are literally thousands of tariffs throughout the industry. Many businesses are on the incorrect tariff. This can of course be changed if requested. However how will you know which is the most suitable one?

The answer is that you wont unless you deal with someone that works inside the industry who can inform you of it. You cant trust the suppliers as they are the ones that more often than not benefit from having customers on the incorrect tariffs. (We have achieved rebates in excess of £10k for customers who have been incorrectly advised by suppliers regarding thier tarrif).

The best people to speak to are specialist consultants.

Isn't it strange though that people appear to take issue that energy brokers make money from arranging contracts? Its a far more complex industry than you can possibly believe. Much more complex than the insurance industry or mortgage industry who "Shock Horror" have brokers and agents who make money from arranging policies and contracts.

Electricity and gas are traded commodities and people will always profit from this.

I don't see anyone jumping on the backs of Tesco's or Morrisons for making a big profit. Yet Centrica get hammered for it. Centricas profit per customer is probably 20 times less that of Tesco's and Morrisons.

Cardew

BusinessEnergyBroker wrote: »

In theory Cardew is right. Whats wrong with with charging a flat rate regardless of the time of day?

Well here's why. ....... snip

All you have done is illustrated perfectly the point I was making!

You have gone on to explain how complicated the tariffs are - not why!

I am certainly not criticising a person for taking advantage of the complexity of the market and becoming a broker.

I am questioning the need for that complexity, and/or lack of clarity, which allows brokers to flourish and add to the overall cost of energy.

I fail to see the relevance of your(justified) remarks about the irrational criticism of Centrica's profits.

BusinessEnergyBroker

Why?

Ok,

The tariffs have been complicated over the years because they were introduced to benefit varying types of businesses. The key word here is benefit. Most customers receive the benefit of having a complex tarrif rather than a simple single rate one. The benefit of this was the reduction in overall cost to the end user.

This still doesnt mean that all businesses are on the correct tariff. The nature and type of business may change at a premises however without a specific request the tariff doesn't.

I fail to see the relevance of your(justified) remarks about the irrational criticism of Centrica's profits.

My response was made due to your earlier comment.

'energy brokers’ can apparently make a lucrative income advising businessmen on how to get a suitable tariff

The relevance was that it appears that most people on this forum appear to believe that it isn't right that suppliers or brokers make a profit when people are struggling to pay.

Why is working in the energy industry any different to being a plumber, builder or joiner? Each will quote for the work, its up to the customer who they decide to use...

Cardew

BusinessEnergyBroker wrote: »

Why?

Ok,

1. The tariffs have been complicated over the years because they were introduced to benefit varying types of businesses.


My response was made due to your earlier comment.


2. The relevance was that it appears that most people on this forum appear to believe that it isn't right that suppliers or brokers make a profit when people are struggling to pay.

Why is working in the energy industry any different to being a plumber, builder or joiner? Each will quote for the work, its up to the customer who they decide to use...

1. With respect that doesn't explain 'Why' but 'How'

2. Obviously people(Brokers aka 'middle-men') should be paid for a necessary service; and I will accept your word that it is necessary because of the complexity and lack of transparency of the many tariffs.

As I said originally the indictment is of the Utility companies for allowing an environment where brokers can thrive and add to the overall cost of energy.

BusinessEnergyBroker

I think the "why?" was explained in the only way it can be. I dont believe that it states "how".

Different tariffs exist to offer the potential reduction of bottom line costs. That is the sole reason that differnent tariffs exists

As I said originally the indictment is of the Utility companies for allowing an environment where brokers can thrive and add to the overall cost of energy

Is this not the same with the money markets (loans/ mortgages etc) and the Insurance market?

Cardew

BusinessEnergyBroker wrote: »

Is this not the same with the money markets (loans/ mortgages etc) and the Insurance market?

Yes!

Hardly a fair analogy or indeed a defence. There are relatively few utility companies selling just 2 products - gas and electricity.

There are hundreds(thousands?) of finance and insurance companies selling complex products.

Some firms like Direct Line do not use brokers, and generally can be can more competitive.

I repeat, I am not criticising any broker for latching on to a lucrative opportunity. I am simply stating that if the Utility Companies got their act together, brokers would not be necessary and an expensive overhead would vanish.